For Most Biotechs, the Tough Times Continue

Source:

"The overall assumption continues to be that many biotech companies are finding it difficult to raise money, generate revenue and simply keep the lights on. But what is the reality? In some respects, the hard times continue, but the picture is a bit mixed."

toughbio120

Pharmalot, Ed Silverman

There is always considerable chatter about the health of the biotech industry and, despite individual tales and stock-picking speculation, the overall assumption continues to be that many companies are finding it difficult to raise money, generate revenue and simply keep the lights on. But what is the reality? In some respects, the hard times continue, but the picture is a bit mixed, actually, depending upon company size and a few other variables.

On average, biotech companies spent $50 million (M) on R&D in 2011, up from just over $47M invested in 2010, and 55% of smaller companies and 66% of large firms—those with revenues greater than $50M—boosted their R&D spending last year. Overall, 65% of revenue was spent on R&D. This coincided with a 24% rise in average revenues for the industry, which increased to $76M, up from $62M during 2010.

However, there are caveats. Large biotech firms—described as those with revenues greater than $50M—reported a 33% increase from the previous year. Smaller biotechs, however, reported average revenues of $20M, a 12% decline from 2010, according to an analysis by the BDO consulting firm of U.S. Securities and Exchange Commission filings of publicly traded companies listed on the NASDAQ Biotechnology Index. Here are some other nuggets from BDO. . .View Full Article

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe